Multinational Firms Have Found That They Can Lower Borrowing Costs

question 64

Multiple Choice

Multinational firms have found that they can lower borrowing costs

• A) by borrowing Eurodollars at a lower rate than the U.S. prime rate.
• B) by borrowing foreign currencies through foreign subsidiaries at rates lower than the U.S. prime and then converting these foreign loans into dollars.
• C) by using more bankers' acceptances.
• D) a and b are both correct.

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Definitions:

Technical Support

Assistance provided by companies to users of technology products or services in solving specific problems or errors.

In-House Function

A task or operation that is performed within an organization by its own members or employees rather than outsourced to an external provider.

Third-Party

An entity involved in a transaction or relationship but not one of the primary or principal parties concerned, often providing services or mediation.

Maslow's Hierarchy Of Needs

A psychological theory proposing that humans have five levels of needs that motivate their behavior, from basic physiological needs to self-actualization.